According to Lessard-Lorange Model, Ending Rate Is the Spot Exchange

question 98

Multiple Choice

According to Lessard-Lorange model, ending rate is the spot exchange rate:

• A) forecast for the end of the budget period.
• B) when the budget is adopted.
• C) when no formal exchange rate exists.
• D) when the budget and performance are being compared.

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Definitions:

Fixed Costs

Those costs that remain essentially at the same level, regardless of any changes in the volume of production.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

Charge Price

The action of setting a specific amount of money as the cost for a product or service.

Profit Margin Percentage

A financial metric that measures the amount of net income generated as a percentage of revenue.